Investor presentation - September 2019

THE CLOUD COMPUTING PROVIDER OF SOUTHEAST EUROPE

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AGENDA

Overview

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Structure and organization

Growth strategy

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Key financials

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People and Cap-table

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Stock and valuation

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Other information

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OVERVIEW

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ABOUT US

DHH is a tech group that provides the “virtual infrastructure” to run websites, apps, e-commerces and software as a service solutions to 100.000+ customers across Southeast Europe (the so-called “Adriatic Sea area”), a geographic area where expected growth rates are higher thanks to current lower digital penetration.

DHH is listed on AIM Italia, a Multilateral Trading Facility regulated by Borsa Italiana and registered as a SME Growth Market.

The group provides domains, hosting, servers and managed infrastructure services, mostly to b2b and professional users

Most of the above-mentioned services are recurring and supplied with a one-to-many model where contracted customers are charged in advance for their subscription

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CORE BUSINESS AND BUSINESS MODEL

Web hosting market worldwide is expected to grow at ca. 16% CAGR by 2023, at $76.2bn turnover, mainly driven by the shift towards business digitalization and by e-commerce higher penetration (Source: Market Research Future, May 2019)

The growing adoption of cloud computing services would fuel the growth of the web hosting services market over the next five years, since several companies are switching their business operations from on-premise to cloud as it helps efficiency and reducing operational costs

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MARKET OPPORTUNITY

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GEOGRAPHICAL OPPORTUNITY

Digital markets in Southeast Europe are one step behind with regard to internet use and are expected to post higher than average growth rates ahead (Source: European Commission, Digital Agenda Scoreboard 2019).

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GEOGRAPHICAL OPPORTUNITY

DHH, gaining a leadership position in these markets would like to take advantage of the robust growth trend already in place due to fill the gap with more mature geographies

These “unusual geographies” can also be seen as experimental markets to test and launch scalable digital businesses internationally, thanks to the amount of talents available in these areas at very competitive costs with respect to more developed markets

Ten businesses under management, with ca. 100 thousand customers and 200 thousand registered domains in five promising countries: market leader in Croatia and Slovenia, but also operating in Italy, Serbia, and Switzerland

In-depth and proven capabilities of turning around and up-scaling acquired assets (ten acquisitions since foundation, six acquisitions after the IPO that took place back in July 2016, corresponding to ca. €6mn cash-out)

Fast growing company (Gross Sales increased by 11% YoY in 1H19), with a well-balanced financial structure, (positive net cash position of €3mn at the end of June 2019) and sound Cash Flow generation as a result of favourable working capital dynamics and low Capex needs, typical of a SaaS company

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MAIN FEATURES

Since its foundation DHH has finalized several investments while successfully IPOing onto AIM Italia stock market: HISTORICAL MILESTONES

Acquisition of Tophost S.r.l., leading low-cost

Italian web hosting player

October 2015

July 2016

March 2017

May 2018

April 2019

November 2015

September 2016

May 2017

October 2018

May 2019

Acquisition of Klaro, a Slovenian web agency

which in turn fully controlled the entire corporate capital of

Domenca, Domovanje, Plus HR and Plus RS

Successful IPO on the Italian AIM stock

market, raising €4.2mn proceeds

Acquisition of Infonet, Croatian company which fully owned

Hosting IT, a young web hosting provider

Acquisition of the business branch of

Studio4Web, low-cost web hosting in the

Croatian market

Acquisition of 60% of Bee Bee Web (together with its

Italian reseller Hosting Star), a Swiss based web

hosting company, owner of the brand Artera, whose

products are addressed to professional users

Establishment of System Bee d.o.o. as a spin-off from DHH

d.o.o. Sysbee is a group of system engineers and infrastructure

architects providing managed hosting services to small and

medium-sized enterprises

Acquisition of mCloud, a Serbian cloud

computing provider fully dedicated at

delivering advanced hosting services

Acquisition of 20% stake of DHH Switzerland from Sergio Ravera

Merger between

mCloud and DHH Serbia

STRUCTURE AND ORGANIZATION

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DHH unique approach is built around the concept of an ecosystem with a common theme in which tech-entrepreneurs can innovate, share best practices, build together and grow as part of the group of like-minded people.

An ecosystem of independent businesses Each acquired company stays independent with its own brand, organization and management team. DHH doesn’t push for operational changes nor impose its own strategic decisions on members of the group. Instead, DHH offers support in different areas like financing, technology, business development.

A long-term relationship DHH’s investment strategy is based on the belief that investing in businesses for the long-term is the only sure way to sustainable returns.

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GROUP STRUCTURE

Synergies, not integrations DHH stimulates bottom-up synergies that come from cooperation between the members of the group. We don’t look for integrations. DHH action is designed to encourage entrepreneurs to take initiatives while offering support at the group level.

Subsidiary key indicators

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Market positioning Domains Hosting Server Managed

infrastructure

Tophost +++ +++ - -

DHH Slovenia +++ +++ + -

DHH Croatia +++ +++ + -

Sysbee - - +++ +++

DHH Switzerland + ++ +++ ++

DHH Italia + ++ +++ ++

mCloud + + +++ -

GROUP STRUCTURE

Switzerland 4%

Serbia 8%

Croatia 30%

Slovenia 30%

Italy 28%

Revenues breakdown by geography in 1H19

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GROUP STRUCTURE

Tophost Italian subsidiary providing entry level solutions to more than 46,000 customers, still keeping the status of the lowest-cost web hosting provider in Italy. Slight decrease in Gross Sales in 1H19 (-2% YoY), mainly due to a small shift in the renewal process across 1Q partially offset by a slight price increase and the launch of innovative products in 2Q.

Subsidiary description 15

DHH Slovenia It is the leading provider in Slovenia (i.e. the largest registrar of .eu and .si domains) managing two brands, Domenca and Domovanje, a domain registration provider and a web hosting service respectively. Double-digit growth in Gross Sales in 1H19 (+16% YoY), resulting from a dynamic marketing activity and launch of high-end products such as the managed WordPress hosting and the hybrid hosting, a mix between shared hosting and VPS servers.

Subsidiary description

DHH Croatia Along with its subsidiaries it is the largest hosting provider in Croatia, with 25% of market share, and total number of customers more than doubled since the IPO, establishing at ca. 20,000. The three proprietary brands (Plus hosting, Studio4web, Infonet) provide a broad array of services, from low-cost hosting solutions to managed hosting services addressed to high end customers. Gross Sales was flat YoY in 1H19, not considering Sysbee, the internal start-up resulting from the spin-off occurred as of May 2018.

17 Subsidiary description

Sysbee Recently established Croatian vehicle focused on managed hosting, resulting from the above-mentioned spin-off, it counts ca. 30 active clients and is steadily growing, recording a sound increase in Gross Sales in 1H19 (+57% YoY).

Subsidiary description Subsidiary description

mCloud It manages two brands, Plus hosting and mCloud, previously under two different legal entities (DHH Serbia no leger exists as of April 24th ). The two brands target different customers in order to meet different needs, i.e. the Revenue-per-user (RPU) of mCloud is on average seven times higher than the RPU recorded by plu.rs. Cumulated Gross Sales stands at ca. €0.3mn. mCloud the newly acquired company involved in the cloud computing field, delivers its products to 1,800 clients and has recorded a strong increase in Gross Sales, standing at ca. €0.2mn in 1H19.

19 Subsidiary description

DHH Switzerland Owner of the brand Artera, it provides high-end services, mainly addressed to customers requiring high reliability and technologically advanced web hosting services. It has generated gross Sales for ca. €0.13mn in 1H19, recording a +16% YoY growth, as result of the positive trend of new registered users and the increasing focus towards services dedicated to resellers and agencies.

DHH Italia the Italian reseller of Swiss premium brand Artera, ca. 2,000 clients and Gross Sales at ca. €0.3mn in 1H19.

Subsidiary description

GROWTH STRATEGY

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Criteria 1. Expansion 2. Consolidation 3. Start-ups

Objective

Entering in new geographies, or expanding product lines acquiring mature and cash

generating companies with at least €1mn turnover

Increasing market share in the current company's

reference market, acquiring small to mid-sized companies

Investing at least €1mn in worldwide innovative start-ups

with appealing ideas

Industry focus Web hosting, Cloud computing

Web Hosting, Cloud Computing New digital technologies

Stage of development Market leader, cash

generating companies with low leverage

Companies with an existing customer base and

distribution network

Team and product with proven traction

Acquisition strategy

Initially cash purchase of 51%-60% of equity with the option to buy the remaining

stake via cash or equity

Asset acquisition without retaining the management

Initial minority stakes with contingent call options

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GROWTH BY ACQUISITIONS Growing by acquisition is a paramount cornerstone of DHH strategy also thank to its positive net cash position. DHH, in order to finalize further investment deals follows the following main guidelines

Scouting for opportunities in Consolidation, New markets, Start-ups

Creating an ecosystem of independent businesses, that means each company remains independent with its own brand, organization, and management team. Indeed, relying on a full commitment of all founders who together with top management team bring in-depth skills in digital business, the Group will help local tech-pioneers:

Offering expert support, cost and revenue synergies achievement, resources and capabilities enhancement

Delivering know-how in managerial processes, business development, financial KPIs implementation etc.

Providing strategic thinking, technology solutions, marketing know-how and other best practices

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GROWTH BY ACQUISITIONS

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BUILDING VALUE THROUGH M&A DHH creates value executing a sound M&A strategy, which aims at substantially increasing the intrinsic value of acquired companies in the very short term after the completion of the deal. This strategy is based on the following pillars:

Proposing a fair valuation for the acquisition, not over-paying the companies.

Structuring a deal where the entrepreneurs have strong incentives to stay in the company after the acquisition with the goal of growing the main business KPIs: revenue, EBITDA, net profit, free cash flow.

Cleaning-up the companies from the costs not connected to the core business, which are a constant in the world of SMEs.

Implementing a control management system in companies, so to improve the budgeting and planning process, which is usually non-existent in the SMEs.

Representing companies’ financials in the best possible way, communicating the meaning behind the numbers.

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Thanks to this approach, in the last 3 years DHH invested 6M EUR in M&A deals and the portfolio companies are now worth more than 10M EUR.

Improving customers acquisition rates, renewal rates and, as a consequence, Life-Time Value (LTV)

Building a diversified product portfolio by integrating new “verticals” beyond traditional Web hosting field, such as Cloud computing and other Value-Added Solutions (VAS)

Expanding supply chain, trying to meet all customers’ needs, mixing high quality products with satisfying experience levels

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ORGANIC GROWTH DHH improves the organic growth of its portfolio companies working on marketing and product innovation:

Implementing managerial capabilities in revamping and optimize acquired assets from a financial and technological point of view

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CASE STUDY

As a consequence, bookings improved dramatically (+16% in 2H17 YoY, and +21% in 1H18 YoY) as a result of turnaround efforts which have been finalized as of 2017. Additionally, there has been a marked improvement in the average lifetime value

TOPHOST case study: adapting a range of operational & strategic measures to transform the organization

At the beginning of 2016, when DHH took over the active management of Tophost, all relevant KPIs were negative, since customer base was recording negative growth rates and average customer acquisition costs (CAC) were disproportionate if compared to lifetime value (LTV) provided on average by customers

In addition, Tophost products were not listed on the first page when an internet research was run, and a survey conducted by the company revealed that clients thought of Tophost as a cheap and unreliable company

To overcome these issues, many adjustments have been implemented, aiming at enhancing Customer acquisition / retention and Profitability margins

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KEY FINANCIALS 04

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DOUBLE DIGIT GROWTH RATES IN 1H19 AND STEADILY POSITIVE CASH GENERATION

Steadily positive cash generation (cash conversion ratio ranging from 70% to 90%), coming from the combination of: Favorable working capital dynamics, specific of a SaaS company, as the group

benefits from getting paid spot and delivering its services at sequent stages; Low capital expenditures need, highlighting the scalability of DHH business model

Double-digit business expansion, mainly due to the acceleration of Sysbee and mCloud - i.e. the internal start-up and the newly acquired company respectively - together with a significant market consolidation in Slovenia thanks to the increasing focus on high-end solutions

Absence of any cost’s capitalization, meaning EBITDA fully reflects operating profitability

Positive Net Cash position (ca. €3mn), allowing further M&A transactions

Cash conversion rate expected in the 70%-90% region

Operating profitability to progressively increase, with EBITDA margin expected at 12.8% and 15.0% respectively in 2019E-20E on a pro-forma basis (gross of non-recurring and extraordinary costs: listing and M&A related costs or indirect costs linked to the parent company)

2019E-20E Gross Sales expected to experience a double-digit growth: +17% and +12% respectively

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RAMP UP CONTINUES 2019E-20E (Source for estimates: Value Track equity research report, 24 September 2019)

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Income Statement (€'000) 2017A 2018A 2019E 2020E Net Revenues 5,289 5,970 6,900 7,752 Other Revenues 387 337 31 37 Total Revenues 5,676 6,307 6,931 7,789 COGS -3,413 -3,956 -4,333 -4,845 Labour cost -1,732 -1,816 -2,068 -2,025 EBITDA 531 534 530 919 D&A -181 -361 -220 -215 EBIT 350 173 310 704 Net Profit 245 103 221 499 Adjusted Net Profit 284 148 296 536

Pro-Forma results (€'000) (*) 2017A 2018A 2019E 2020E Net Revenues P-F 5,670 6,163 6,931 7,789 EBITDA P-F 886 841 880 1,169 EBIT P-F 702 647 660 954 Net Profit P-F 534 526 484 684

Balance Sheet (€'000) 2017A 2018A 2019E 2020E Net Fixed assets 6,243 6,171 6,076 6,011 Net Working Capital -1,369 -1,172 -1,313 -1,427 Severance pay and other funds 22 15 39 46 Total Capital Employed 4,852 4,967 4,725 4,538 o/w Group Net Equity 7,333 7,571 7,799 8,298 Net Fin. Position 2,481 2,604 3,075 3,760

(*) Pro-forma results (not audited) do not consider AIM Italia listing costs / other non-recurring M&A related items and take into account financial effects of the acquisitions for the whole fiscal period (and not since the official consolidation date) Source: Company (historical figures), ValueTrack (2019E-20E estimates)

DHH: SUMMARY OF FINANCIALS

Key figures & Ratios 2017A 2018A 2019E 2020E EBITDA Margin 10% 9% 8% 12% EBIT Margin 7% 3% 5% 9% Net Margin 5% 2% 3% 6% ROE 3% 1% 3% 6% ROCE b.t. 7% 4% 7% 16% Net Debt / Equity nm nm nm nm Net Debt / EBITDA (x) nm nm nm nm OpFCF b.t. as % of EBITDA 118% 48% 104% 96% P/E Adj. (x) 24.5x 13.9x P/BV (x) 0.9x 0.8x EV/Sales (x) 0.6x 0.5x EV/EBITDA (x) 8.2x 4.0x Revenue YoY growth (%) 34% 13% 16% 10% EBITDA YoY growth (%) 49% 1% 0% 74% Net Profit YoY growth (%) 58% -58% nm nm Company data Outstanding Shares (mn) 1.49 Market Price (€) 5.15 Fair Value (€) 10.0 Market Cap (€mn) 7.7

DHH: SUMMARY OF FINANCIALS

Cash Flow Statement (€'000) 2017A 2018A 2019E 2020E EBITDA 531 534 530 919 Op. WC requirements 424 -196 141 115 Capex (not incl. Fin. Inv.) -350 -92 -125 -150 Change in provisions 20 11 7 7 Cash Taxes -58 -52 -74 -181 OpFCF a.t. 568 205 478 710 As a % of EBITDA 107% 38% 90% 77% Capital Injections 0 115 0 0 Other (incl. Fin. Inv.) -1,241 -176 7 -15 CF to serve debt/equity -674 144 485 695 Net Financial Charges -29 -21 -15 -10 Dividend paid 0 0 0 0 Change in Net Fin Position -703 123 470 685 Net Fin. Position 2,481 2,604 3,075 3,760

DHH: SUMMARY OF FINANCIALS

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PEOPLE & CAP-TABLE 05

• Digital Magics IPO (2013) • MailUp Group IPO (2014) • Tech investor with

Grafoventures

• Domovanje bootstrap • Domenca acquisition

Matija Jekovec co-founder, COO Group finance and operation

Antonio Baldassarra co-founder, Board Member Group business strategy advisor • Seeweb bootstrap • Docebo investment (exit 2015)

Guido Busato Board Member Group business strategy advisor • EcoWay bootstrap

Giandomenico Sica co-founder, President Growth strategy and M&A

Uroš Čimzar co-founder, CEO Growth strategies of portfolio companies

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• Domovanje bootstrap • Domenca acquisition

FOUNDERS AND TOP MANAGERS DEEPLY COMMITTED TO DHH

Free float 32.8%

Seeweb Holding Srl* 24.2%

Giandomenico Sica 13.4%

Matija Jekovec 7.3%

Uroš Čimzar 7.3%

Tomaž Koštial 0.4%

Matjaž Jazbec 7.3%

Martin Romih 7.3%

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*The owners of Seeweb Holding Srl are Antonio Domenico Baldassarra (50,67%) and Enrico Vona (49,33%).

FOUNDERS AND TOP MANAGERS DEEPLY COMMITTED TO DHH

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STOCK & VALUATION 06

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At current €5.0 stock price, DHH has a €7.4mn market capitalization which implies very cheap multiples: 3.1x, 3.9x, 3.2x, EV/EBITDA EV/EBIT, and EV/OpFCF respectively, calculated on 2020E pro-forma figures (i.e. gross of listing M&A costs).

This situation is the result of the extremely low traded volumes that make almost totally meaningless these “apparent” implied multiples. Indeed, In the latest year DHH has cumulated only 39.3k shares traded (€229k share turnover value) in 74 days of active trading (i.e. it has not traded for 177 days) as everybody was waiting for bonus shares allocation. Indeed, 80% of IPO subscribers has maintained its shares for the latest three years (results announced back at the start of September).

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Looking at European field, the Spanish company Gigas Hosting is similar to DHH in terms of business model, size and listing on “growth” MTFs. That said, such Spanish company boasts a €30mn market capitalization and is currently trading at 2.0x, 11.8x, 30.0x, 4.6x EV/Sales, EV/EBITDA, EV/EBIT, P/BV 2020E respectively, much higher than DHH.

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Based on 2019E-20E estimates provided by Value Track, DHH trades at a wide discount vs. selected domestic peers, i.e. SaaS companies listed on AIM Italia stock market. At current market price DHH is trading on average at ca. 50% on reported figures and ca. 60% on a pro-forma basis.

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STOCK PERFORMANCE AND VALUATION RELATIVE TO COMPARABLES

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DHH Stock Performance

DHH Stock Market Multiples relative to Selected Comparables

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Company EV / Sales (x) EV / (OpFCF b.t.) (x)

2019E 2020E 2019E 2020E MailUp 1.0 0.8 17.5 10.9 Prisimi 1.7 1.3 12.8 8.7 AMM Group 1.2 0.8 8.0 3.9 Maps Group 1.5 1.2 8.7 6.5 Neosperience 4.2 2.9 18.2 12.3 Median 1.5 1.2 12.8 8.7 Average 1.9 1.4 13.0 8.5 DHH PF 0.6 0.5 4.6 3.9

DHH vs. Med. -63% -66% -64% -55%

DHH vs. Avg. -71% -71% -65% -54%

Market Cap Approx. €7,4 mn (Sept 2019)

ISIN ordinary shares IT0005203622

Outstanding number of shares 1.49 mn

Listing Milan, AIM ITALIA

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STOCK DETAILS

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OTHER INFORMATION 07

Address DHH S.p.A Via Caldera, 21 20153 Milan - Italy

Phone +39 02 87365100

Email info@dhh.international

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CONTACTS

www.dhh.international

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